The standard cost sheet for a product is shown

Accounting Dec 01, 2020

The standard cost sheet for a product is shown.

Manufacturing Costs	Standard price	Standard Quantity	Standard Cost per unit
Direct materials	$4.70 per pound	6.10 pounds	$	28.67
Direct labor	$12.16 per hour	2.00 hours	$	24.32
Overhead	$2.20 per hour	2.00 hours	$	4.40
			$	57.39

The company produced 3,000 units that required:

• 18,800 pounds of material purchased at $4.55 per pound

• 5,900 hours of labor at an hourly rate of $12.56 per hour

• Actual overhead in the period was $13,680

Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the nearest dollar. However, do not round your intermediate calculations.

Budget Performance Report
Manufacturing Costs: 3,000 units	Actual Costs	Standard Costs	Variance (Favorable)/ Unfavorable
Direct materials	$85,540	?	?
Direct labor	?	72,960	?
Overhead	13,680	?	?
	?	?	$1,154

Split the direct materials cost variance into the materials price varaince and the Direct materials quantity variance. Remember that you want to isolate the price variance from the quantity variance so be sure to use factors that do not overlap. Also remember that the two variances should equal the total direct material cost variance.

Direct materials price variance:	Direct materials quantity variance:
(Actual price - Standard price) x actual quantity	(Actual quantity - Standard quantity) x standard price
$2,820 favorable	$2,350 unfavorable

Split the direct labor cost variance into the direct labor rate variance and the direct labor time variance. Remember that you want to isolate the price variance from the efficiency variance so be sure to use factors that do not overlap. Also remember that the two variances should equal the total direct labor cost variance.

Direct labor rate variance:	Direct labor time variance:
(Actual rate - Standard rate) x hours	(Actual hours - Standard hours) x labor rate
?	?

Manufacturing variances are period costs that are rolled into_______? and reported on the________? . A favorable variance is recorded as a _________? and an unfavorable variance is recorded as a________? .

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